Stocks Sink as Bank Rate Soars

Microsoft Decline Weighs on Markets

Canada's main stock index fell at the open on Wednesday, with industrial and consumer discretionary stocks pulling the benchmark lower while investors digested the Bank of Canada's monetary policy decision.

The TSX tumbled 183.94 to begin Wednesday at 20,445.61.

The Canadian dollar hiked 0.19 cents at 74.96 cents U.S.

Results from Canadian National Railway showed fourth-quarter earnings beat market expectations. CN shares faltered $7.74, or 4.7%, to $158.17.

A court on Tuesday dismissed the competition bureau's effort to overturn an approval of Rogers Communications $20-billion bid to buy Shaw Communications. Rogers shares took on 29 cents to $66.78, while those for Shaw spiked 52 cents, or 1.3%, to $40.02.

The Bank of Canada today increased its target for the overnight rate to 4.5%, with the Bank Rate at 4.75% and the deposit rate at 4.5%. In Wednesday’s news release, the central bank also revealed itis also continuing its policy of quantitative tightening.


The TSX Venture Exchange dumped 7.23 points, or 1.2%, to 615.80.

All but three of the 12 subgroups were bruised in the first hour, with industrials down 2%, energy sputtering 1.8%, and consumer discretionary stocks off 0.9%.


Stocks fell on Wednesday after the latest batch of corporate earnings intensified concerns over how some of the largest companies are faring as rates rise and recession fears grow.

The Dow Jones Industrials dived 251.42 points to 33,482.54.

The S&P 500 slid 50.11 points, or 1.3%, to 3,996.84.

The NASDAQ Composite swooned 225.27 points, or 2%, to 11,105.

Microsoft dropped 4% after it offered lackluster guidance on its earnings call. The news contributed to declines among technology stocks, with Alphabet, Salesforce and Tesla last down about 3% each. Boeing dipped following a top-and bottom-line miss.

Investors are bracing for more high-profile corporate earnings this week as fears of a recession mount. So far, more than 90 S&P 500 companies have reported fourth-quarter earnings, and 68% of them posted stronger-than-expected results.

Tesla and IBM and are among the companies slated to post numbers after the bell.

Wednesday’s moves followed a three-day winning streak for the blue-chip Dow. All three major averages are trading flat, or slightly higher, for the week.

Prices for the 10-year Treasury gained ground, lowering yields to 3.43% from Tuesday’s 3.46%. Treasury prices and yields move in opposite directions.

Oil prices gave back 64 cents to $79.49 U.S. a barrel.

Gold prices retreated $3.50 to $1,931.90 U.S. an ounce.